Insurance in the time of Covid-19

Communication is key
Mariselle Stofberg
On Tuesday, a discussion regarding the service provision of insurance companies during the coronavirus pandemic took place at the Covid-19 Communication Centre in Windhoek.
Representatives from the Namibia Financial Institutions Supervisory Authority (Namfisa), Sanlam Namibia and Old Mutual joined in the discussion to shed some light on issues regarding service provision in the insurance sector.
Insurance in the country can be divided into short-term and long-term insurance. John Usiku, the insurance manager at Namfisa, said, currently, 16 life insurance companies are registered and operating in Namibia, with 1.7 million insurance contracts issued to the public, of which 34% is funeral insurance contracts.

‘Fairly good margin'
“Currently, the insurance sector has total assets of N$56 billion in Namibia, of which N$12 billion are free assets. This serves as a fairly good margin of safety for the industry and speaks to the fact that the insurance industry is sound and well capitalised,” Uusiku said.
He added that the sector and Namfisa has been agile and proactive in understanding the impact of Covid-19 on the industry and immediately started with stakeholder consultation since the initial outbreak, when they engaged each of the registered insurance companies.
“We had discussions with them on their outlook and the possible impact of the pandemic. That consultation resulted in Namfisa issuing a Covid-19 circular where we made recommendations to the various insurance companies. This included premium holidays that were among some of the recommendations made to see where insurance companies can assist policyholders.”

Financial guidance and counselling
Uusiku stressed the importance of financial guidance and counselling to those who want to cancel policies due to financial constraints and providing alternatives to see where policyholders can be assisted.
“This has had a direct positive impact on the amount of policies cancelled. We also need to take care of the insurance intermediary companies, which are essential for the survival of insurance companies, and we also encouraged our insurance companies to assist these intermediaries where possible, because they too have felt the impact of Covid-19.”
Uusiku added that the proposed relief will only be valid during the state of emergency as an interim arrangement made in good faith.

No discrimination
Hilaria Craig, the marketing and communication manager at Sanlam Namibia, assured that there would never be discrimination against claims as a result of Covid-19 deaths.
“We don’t have a specific Covid-19 related payment strategy. We are honouring all claims if all requirements are met. If the waiting period has been met, we will pay out. Funeral cover is not influenced by the type of death, and therefore no discrimination will take place,” she said.
This was reiterated by John Hesekiel, the head of distribution at Old Mutual.
“We understand that these are difficult and unprecedented times, and we are trying to align ourselves to what is happening in the country.
“We have also reduced the waiting period for Covid-19 related death claims only,” Craig added.

State burials
Both Sanlam Namibia and Old Mutual emphasised that burials done by the state due to Covid-19 related deaths will not affect claims made.
“In essence, we have a contract with the policyholder, so when a Covid-19 death happens, we still pay out the amount covered, even when burials are done by the state,” Craig said.
Another discussion point was the cancellation of policies due to financial constraints caused by the lockdown and state of emergency.
“There are always options available to help you when you are not able to pay your premiums, and we want to help where we can. We urge our customers to consult their advisors to see alternative options,” Hesekiel said.
“It can become a very hard decision to make when you need to decide between bread on your table and your insurance policy. You insure for unforeseen circumstances. Especially regarding Covid-19, where deaths are unpredictable, it is important for you to make sure you have something in place to help and protect those loved ones you may leave behind. “We will help you where we can, and we can sit down and see where we can accommodate you. We must hold hands and help one another, now more than ever,” Craig added.